When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as the
A)marginal revenue multiplied by the wage.
B)marginal product of labor multiplied by the wage.
C)marginal product of labor divided by the wage.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The marginal cost of a unit of output is the wage divided by the marginal product of labor, not any of the options provided.

When Labor Is the Only Input a Firm Uses, the Marginal